Want to serve your country? Want to be a superhero?
Get a degree in accounting.
I realize that no one envisions a superhero in a cape with a calculator and a shovel, but I think we’re going to need a whole passel of gimlet-eyed, grey-faced number crunchers and bean counters with eye-shades before any of these investigations are over.
Exhibit A: Dick Cheney’s connection with the private companies running the Texas Prisons – An Update:
“Willacy County District Attorney Juan Angel Guerra spoke to two Texas television stations Wednesday night regarding his investigation of injustice within the prison systems which led to the indictment by a Texas grand jury of Vice President Dick Cheney and former Attorney General Alberto Gonzales, along with other officials.
Cheney’s [$85 million] stake in the Vanguard Group, which holds interests in the private prison companies that run the detention centers, was cited in the indictment. Cheney is accused of a conflict of interest and "at least misdemeanor assaults" on detainees through his ownership interest.”
Vanguard Group is a huge investment company that has interests in companies that contract with the Federal Government to operate prisons and detention centers. The Vanguard Group, just to clarify, is the huge, “fund of mutual funds” headquartered in Valley Forge, PA, established in 1975, with approximately $1.3 trillion in US mutual fund assets as of 12/07.
So, if you have any 401K or other pension or other personal investments with an entity with a masted ship in its logo, and known as Vanguard, then you, TOO are (depending on which fund you are invested IN) possibly invested in these private prison companies. The difference is that you are not the Vice President of the United States and cannot possibly enrich yourself through which might be considered a conflict of interest or the appearance of involvement.
“Guerra says he went through Cheney’s financial records and the prison companies’ financial records and found the connection. The three top prison companies Guerra researched were Corrections Corporation of America, GEO Group and Cornell. Those three have the Vanguard Group in common, which is an investment company that puts money into all three prison companies."
Guerra showed [the tv station reporters] the Vice President’s financial disclosure from last year and it shows he owned shares in the Vanguard Group. Guerra estimates Cheney has $85 million invested in Vanguard and in turn, into the prison companies.”
Guerra is not a popular prosecutor in his county – he’s at the end of his term and this indictment is considered to be a nuisance case. In the meantime, however, Guerra is making a lot of noise about the case against Gonzalez and Cheney and is getting a lot of coverage for it. At the same time, though, it is just another example of how useful skills in ‘following the money’ may become over the next few years, depending on what direction the new Administration would like to go in terms of investigating members and former members of the current administration.
And remember: Assets, Liabilities and Equity go on the Balance Sheet; Revenue and Expenses go on the Income Statement.



15 Comments




Guerra’s indictment is not restricted to Cheney and Gonzales, of course. A Texas state senator who has been closely linked to the for-profit prison industry is one of those indicted as are the major, billion-dollar corporations in that sordid business. CCA is well known for moving executives from top government positions (BOP, ICE) to Vice Presidencies in the prison version of Eisenhower’s military-industrial complex. They’ve taken care of former Tennessee governor and current US Senator Lamar Alexander very well. A prisoner murder corporate cover-up cost its chief counsel, Gus Puryear, confirmation of his nomination to the federal bench this year. http://www.againstpuryear.org
GEO Group was found to have offered the Colorado Director of Prisons about a million dollars if and when he was able to get their prison built at Ault. Thanks to a Republican administration there, he and they were not prosecuted. Cornell left a money trail that extended beyond coast to coast. They gave $44,500 to the bag men for the mayor of Richmond, Virginia, dropped $10,000 more in an illegal contribution on Tom DeLay for his redistricting scheme in Texas and had illegal corporate campaign contributions from its California executive laundered through its lobbyist who became an FBI informant and eventually helped bring down Senator Ted Stevens, numerous other state legislators and Alaska’s richest businessman. Those indictments continue.
The Gonzales Justice Department that forced privatization of tens of thousands of prison beds by these corrupt and dangerous corporations on the taxpayer. Two county commissioners in Willacy, Guerra’s county, were convicted of receiving bribes over a prison and sentenced to unbelievably short terms for their future “cooperation” in other cases, but the charges against the bribers were inexplicably never brought. Guerra seeks to reopen that can of worms.
Nuisance? You bet. If you were a corrupt politician or executive, you certainly would want to avoid that sort of a nuisance.
man, I wish this endictment would get more media play
cheney needs to be proven the criminal he is before the entire country and everything he’s done needs to be rebuked.
this would serve that purpose
eXcellent
Thank you, Toby.
thanks
follow the money indeed
Hate to rain on any parades here but Vanguard is a huge family of funds. An investor indicates what type of fund they would like to be invested in ie Asian fund, high risk etc. the investments made by the funds however are generally managed by the fund managers.
Yep, Mike. as I said above:
“Vanguard Group is a huge investment company that has interests in companies that contract with the Federal Government to operate prisons and detention centers. The Vanguard Group, just to clarify, is the huge, “fund of mutual funds” headquartered in Valley Forge, PA, established in 1975, with approximately $1.3 trillion in US mutual fund assets as of 12/07.”
On the other hand, Dick can read a prospectus as well as anyone else, and also has $85 million invested with them. He probably has his own personal ‘fund manager’ who he consulted with(anyone with that big a stick to swing will have that level of perk). Anyone in Dick’s position should have told his ‘fund manager’ that for purposes of conflict of interest, he could not be invested in any company that would be involved with contracts with the feds. However it happened, Cheney is invested in a fund/funds which have investments in these three prison management companies. Dick is a really busy guy, maybe he doesn’t keep an eye on his investments – but he really really should.
Another angle on the story which is ‘fun’ is that some of the people Guerra is indicting were part of a conspiracy to have him arrested just before the recent election. That’s why Guerra lost.
Most fun? The judge for the case Guerra has brought against Cheney and Gonzales et al…he was the guy who had Guerra arrested.
It’s payback time all around. Texas politics. Slime on a stick.
Please keep on this story, I just booked marked it because this could be BIG!
Can we get Ton Delay on this too?:)
Well, Guerra found out about Cheney from looking at the information he has to file because he’s VP – Delay had to file info when he was in Congress also, right? but he’s been out of Congress for a while.
You know he has more than a personal Fund manager he has Lawyers, Accountants he has people to manage his funds and people to watch for conflicts of interests.
$85 million is no accident thats a serious bet that stock, or mutual fund will go up. Was he always in one fund or was he diversified before?
Did he throw down the cash a little before the prison contracts came in?
Any other VP, Vanguard conflicts of interests.
Is this obvious Amateur hour? This is so obvious they are trying to shut him up.
I want him at the Lake for an interview!
Link not working for me?
http://finance.google.com/finance?cid=673259
I just posted your Diary on Vanguards Google finance page not much traffic there though.